Full Press Release Details
Arcus Biosciences Announces Second Quarter 2018 Financial Results and Recent Corporate Updates
Hayward, CA. - (BUSINESS WIRE) - August 6, 2018 - Arcus Biosciences, Inc. (NYSE:RCUS), a clinical-stage biopharmaceutical company focused on creating innovative cancer immunotherapies, today announced financial results for the second quarter ended June 30, 2018 and recent corporate updates.
"We are pleased with the progress we have made in advancing our molecules into studies in patients with three product candidates now in clinical development," said Terry Rosen, Ph.D., Chief Executive Officer at Arcus. "We continue to believe that AB928, our dual adenosine receptor antagonist, has the potential to significantly enhance the activity of anti-PD-1 antibodies as well as certain chemotherapies and have designed our clinical program for AB928 to demonstrate the potential of these combinations in multiple tumor types where the adenosine pathway is believed to play a critical role. The program will include extensive biomarker analysis to identify biomarkers that may be predictive of response and to demonstrate that changes in immune markers correlate with responses and are consistent with AB928's mechanism. We look forward to reporting initial safety, biomarker and clinical data for our AB928 combinations in patients in the first half of 2019."
AB928 (dual A2aR/A2bR antagonist)
Each of these chemotherapy regimens induces immunogenic cell death (a hallmark of which is the generation of significant amounts of adenosine), and therefore their anti-cancer activity is believed to be enhanced by A2aR antagonism. The trials will begin with a dose-escalation portion to identify the recommended dose of AB928 for each chemotherapy regimen, which will be followed by expansion cohorts. The dose-escalation portion will enroll patients with the same tumor types as the expansion cohorts. The Company also plans to evaluate other AB928 combinations, e.g. AB928 + AB122, in these trials.
AB122 (anti-PD-1 antibody)
AB154 (anti-TIGIT antibody)
AB680 (small molecule CD73 inhibitor)
In the second half of 2018, the Company expects to
In the first half of 2019, the Company expects to
Second Quarter and Year-to-Date 2018 Financial Results
Based on its current operating plan, the Company expects that its cash and investments as of June 30, 2018 will enable the Company to fund its anticipated operating expenses and capital expenditure requirements into at least the fourth quarter of 2020.
About Arcus Biosciences
Arcus Biosciences is a clinical-stage biopharmaceutical company focused on creating innovative cancer immunotherapies. Arcus has several programs targeting important immuno-oncology pathways, including a dual adenosine receptor antagonist AB928, which is in a Phase 1/1b program to evaluate AB928 in combination with other agents in multiple tumor types, and an anti-PD-1 antibody AB122, which is being evaluated in a Phase 1 trial and is being tested in combination with Arcus's other product candidates. Arcus's other programs include AB154, an anti-TIGIT antibody, which is in a Phase 1 trial to evaluate AB154 as monotherapy and in combination with AB122, and AB680, a small molecule inhibitor of CD73, which is in IND-enabling studies. Arcus has extensive in-house expertise in medicinal chemistry, immunology, biochemistry, pharmacology and structural biology. For more information about Arcus Biosciences, please visit www.arcusbio.com.
Forward-Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical facts contained herein, including, but not limited to, Arcus's clinical development plans, biomarker activities and timelines, are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause Arcus's actual results, performance or achievements to differ significantly from those expressed or implied. Factors that could cause or contribute to such differences include, but are not limited to, the inherent uncertainty associated with
pharmaceutical product development and clinical trials, difficulties or delays in developing and validating biomarkers and related assays, and delays in our clinical trials due to difficulties or delays in the regulatory process, enrolling subjects or manufacturing or supplying product for such clinical trials. Risks and uncertainties facing Arcus are described more fully in Arcus's quarterly report on Form 10-Q for the quarter ended June 30, 2018 filed on August 6, 2018 with the SEC. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this press release. Arcus disclaims any obligation or undertaking to update, supplement or revise any forward-looking statements contained in this press release.
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Source: Arcus Biosciences
ARCUS BIOSCIENCES, INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share amounts)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Collaboration and license revenue | $ | 1,250 | $ | - | $ | 2,500 | $ | - | ||||||||
| Operation expenses: | ||||||||||||||||
| Research and development | 13,699 | 7,834 | 25,352 | 13,637 | ||||||||||||
| General and administrative | 3,450 | 1,830 | 6,379 | 3,327 | ||||||||||||
| Total operating expenses | 17,149 | 9,664 | 31,731 | 16,964 | ||||||||||||
| Loss from operations | (15,899 | ) | (9,664 | ) | (29,231 | ) | (16,964 | ) | ||||||||
| Interest and other income, net | 2,366 | 114 | 2,743 | 214 | ||||||||||||
| Net loss | (13,533 | ) | (9,550 | ) | (26,488 | ) | (16,750 | ) | ||||||||
| Other comprehensive gain (loss) | 14 | 11 | (41 | ) | 3 | |||||||||||
| Comprehensive loss | $ | (13,519 | ) | $ | (9,539 | ) | $ | (26,529 | ) | $ | (16,747 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.32 | ) | $ | (5.64 | ) | $ | (1.01 | ) | $ | (10.66 | ) | ||||
| Weighted-average number of shares used to compute basic and diluted net loss per share | 42,533,641 | 1,693,150 | 26,236,007 | 1,571,905 |
ARCUS BIOSCIENCES, INC.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
| June 30, | December 31, | |||||||
| 2018 | 2017 (1) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 169,998 | $ | 98,426 | ||||
| Short-term investments | 95,700 | 77,277 | ||||||
| Prepaid expenses and other current assets | 1,550 | 1,141 | ||||||
| Amounts owed by a related party | 193 | 25 | ||||||
| Total current assets | 267,441 | 176,869 | ||||||
| Long-term investments | 11,792 | - | ||||||
| Property, plant and equipment-net | 12,513 | 11,230 | ||||||
| Equity investment in related party | 1,711 | 682 | ||||||
| Restricted cash | 203 | 203 | ||||||
| Other long-term assets | 205 | 1,502 | ||||||
| Total assets | $ | 293,865 | $ | 190,486 | ||||
| LIABILITIES | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 5,388 | $ | 3,820 | ||||
| Accrued liabilities | 4,342 | 3,137 | ||||||
| Deferred revenue, current | 5,000 | 5,000 | ||||||
| Other current liabilities | 1,650 | 769 | ||||||
| Total current liabilities | 16,380 | 12,726 | ||||||
| Deferred revenue, noncurrent | 16,087 | 18,587 | ||||||
| Deferred rent | 4,516 | 4,740 | ||||||
| Other long-term liabilities | 2,308 | 565 | ||||||
| Total liabilities | 39,291 | 36,618 | ||||||
| Convertible preferred stock | - | 226,196 | ||||||
| Stockholders' equity (deficit): | ||||||||
| Common stock | 4 | - | ||||||
| Additional paid-in capital | 354,375 | 948 | ||||||
| Accumulated deficit | (99,722 | ) | (73,234 | ) | ||||
| Accumulated other comprehensive loss | (83 | ) | (42 | ) | ||||
| Total stockholders' equity (deficit) | 254,574 | (72,328 | ) | |||||
| Total liabilities, convertible preferred stock and stockholders' equity (deficit) | $ | 293,865 | $ | 190,486 |
(1) The Condensed Consolidated Balance Sheet as of December 31, 2017 has been derived from the audited financial statements as of that date.